Financing and Structuring Health Care

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Financing and Structuring Health Care
Assignment #2

Health Services Organization – HSA 500

1. Identify and describe the three main types of health insurances in the U. S.

The three main types of are Voluntary Health Insurance (VHI), Social Health Insurance, and Public Assistance or Welfare medicine. Each type of health insurance provides medical benefits which provide payment for medical services rendered.

Voluntary health insurance (VHI) can be divided into three categories: BCBS, private or commercial insurance companies and Health Maintenance Organizations (HMO). VHI began in 1929 when Baylor teachers in Dallas, Texas contracted with Blue Cross to provide hospital coverage for three cents a day. This was the beginning of hospital coverage provided by an insurance company. Other states began to provide this same type of coverage for their employees. Since this time health coverage has been extended to provide benefits for physicians, pharmacies and other medical providers. More than 70 years later over 70 percent of the US population under age 65 has some form of VHI, and more than 90 percent of these have health coverage linked through employment.

The United States mandates two social health insurance (SHI) programs: Workers Compensation which covers the cost associated with job-related injuries, and Medicare which provides health insurance for the elderly, disabled and other special groups. Workers Compensation provides two basic benefits: cash replacement for lost wages and payment for all or part of necessary medical care when services are related to job-related injuries. Medicare is the main form of SHI and pays out the most benefits. Medicare pays for hospital, physician and other medical services. Medicare covers people 65 yrs and over, disabled persons entitled to Social Security benefits, and those affected by end-stage renal disease (ESRD).…...

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